Wed 19 Oct 2011 14:48

Wärtsilä expects sales to fall in 2011


Finnish firm publishes interim report for the first nine months of this year.



Finnish engine manufacturer Wärtsilä has today reported an operating result for the January-September 2011 period of EUR 324 million, down from EUR 328 million during the corresponding period last year.

Net sales during the first nine months of 2011 decreased by 4 percent to EUR 2,970 million, down from EUR 3,091 million in 2010. Earnings per share amounted to EUR 1.05, compared to 1.18 in the prior-year period.

The order intake increased by 9 percent to EUR 3,267 million between January and September, up from EUR 3,002 million last year.

Third Quarter 2011

Please find below a sumamry of the highlights for the third quarter.

- Order intake increased by 11% to EUR 1,118 million (1,004).

- Order intake in joint venture companies grew significantly, EUR 182 million (68).

- Net sales decreased 18% to EUR 851 million (1,039).

- Operating result EUR 94 million, or 11.0% of net sales (EUR 117 million and 11.2%).

- Earnings per share amounted to EUR 0.28 (0.41).

- Book-to-bill increased to 1.31 (0.97).

- Wärtsilä acquired Cedervall, a manufacturer of shaft seal and bearing systems for the marine industry.

Commenting on the results, Bjorn Rosengren, Wärtsilä President and CEO, said: "This is my first time presenting Wärtsilä's result and I am pleased as it was strong in many ways. Wärtsilä's resilience in terms of solid profitability and increasing order intake in all three businesses gives us good possibilities for the future. In addition to the active Offshore segment, order intake grew significantly in our Korean joint venture, which focuses on dual-fuel engines for LNG carriers. This emphasises our strong position in the gas engine markets. Power Plants received some landmark orders, in addition to good ordering activity globally. Mining sector customers, utilities and Independent Power Producers actively placed orders.

"The third quarter developed as expected in terms of net sales, which was on a lower level compared to the previous year. This development was mainly related to the timing of deliveries. While certain marine service markets are suffering from uncertainties in the global economy, the power plant service market is more stable. In the slightly longer term, we see good prospects arising for environmental services. Despite the increased uncertainties in the global economy during this quarter, our prospects for net sales and profitability for the year 2011 remain the same."

Wärtsilä said it expects net sales for 2011 to decline by 0-5 percent compared to last year and operational profitability (EBIT% before nonrecurring items) to be around 11 percent.

Chart showing percentage of off-spec and on-spec samples by fuel type, according to VPS. Is your vessel fully protected from the dangers of poor-quality fuel? | Steve Bee, VPS  

Commercial Director highlights issues linked to purchasing fuel and testing quality against old marine fuel standards.

Ships at the Tecon container terminal at the Port of Suape, Brazil. GDE Marine targets Suape LSMGO by year-end  

Expansion plan revealed following '100% incident-free' first month of VLSFO deliveries.

Hercules Tanker Management and Hyundai Mipo Dockyard sign bunker vessel agreement Peninsula CEO seals deal to build LNG bunker vessel  

Agreement signed through shipping company Hercules Tanker Management.

Illustration of Kotug tugboat and the logos of Auramarine and Sanmar Shipyards. Auramarine supply system chosen for landmark methanol-fuelled tugs  

Vessels to enter into service in mid-2025.

A Maersk vessel, pictured from above. Rise in bunker costs hurts Maersk profit  

Shipper blames reroutings via Cape of Good Hope and fuel price increase.

Claus Bulch Klausen, CEO of Dan-Bunkering. Dan-Bunkering posts profit rise in 2023-24  

EBT climbs to $46.8m, whilst revenue dips from previous year's all-time high.

Chart showing percentage of fuel samples by ISO 8217 version, according to VPS. ISO 8217:2024 'a major step forward' | Steve Bee, VPS  

Revision of international marine fuel standard has addressed a number of the requirements associated with newer fuels, says Group Commercial Director.

Carsten Ladekjær, CEO of Glander International Bunkering. EBT down 45.8% for Glander International Bunkering  

CFO lauds 'resilience' as firm highlights decarbonization achievements over past year.

Anders Grønborg, CEO of KPI OceanConnect. KPI OceanConnect posts 59% drop in pre-tax profit  

Diminished earnings and revenue as sales volume rises by 1m tonnes.

Verde Marine Homepage Delta Energy's ARA team shifts to newly launched Verde Marine  

Physical supplier offering delivery of marine gasoil in the ARA region.


↑  Back to Top